Given is a decision payoff table with future demand probabilities. Answer all qu

ID: 3119888 • Letter: G

Question

Given is a decision payoff table with future demand probabilities. Answer all questions below.

Future Demand

Alternatives Low Moderate High

Small Facility 33 22 18

Medium Facility 19 33 22

Large Facility -10 29 43

Probabilities 0.35 0.3 0.35

a) The EMV (Expected Monetary Value) for small facility is = (in 1 decimal place)

b) The EMV (Expected Monetary Value) for medium facility is = (in 1 decimal place)

c) The EOL (Expected Opportunity Loss/Regrets) for medium facility is = (in 2 decimal places)

d) The EOL (Expected Opportunity Loss/Regrets) for large facility is = (in 2 decimal places)

e) The best decision by using EMV is to select the facility f) The best decision by using EOL is to select the facility

for small = 33*0.35 + 22*0.3 + 18*0.35 = 24.45 = 24.4

for medium = 19*0.35 + 33*0.3 + 22*0.35 = 24.2

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